Double Entry Accounting System
What is Double entry accounting system?
Double-entry accounting is a system of bookkeeping that records each financial transaction in at least two accounts, one being debited and the other being credited. This system is based on the principle that for every debit entry, there must be a corresponding credit entry, ensuring that the accounting equation (Assets = Liabilities + Equity) is always in balance.
How to do a double entry in accounting?
In a double-entry accounting system, each transaction is recorded using journal entries, which include the date, the accounts involved, and the amounts debited and credited. The debits and credits must always be equal, ensuring that the system remains balanced.
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